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Why The Cheapest Car Insurance May Not Be the Best?

By Finserv MARKETS - Feb 11,2019
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Why the Cheapest Car Insurance May Not Be the Best

Although high prices are not a definitive indicator of better quality, generally, the opposite is true. When it comes to insurance, the adage that “you get what you pay for” is quite accurate. The low price of a policy could be at the cost of the coverage and other benefits. The whole point of getting car insurance is to help you recover the high costs of damage to your car in the event of a mishap. Underinsurance is as good as no insurance at all. If the cheapest car insurance does not offer you sufficient coverage, it’s better to choose some other plan that does.

To give you a clearer picture, here are some reasons why the cheapest car insurance may not be the best:-

  • Insufficient coverage-

Some cheap car insurance plans only consist of third party car insurance coverage. This means, if your car is damaged in an accident, the insurance company will only pay for the damages caused to the third party. The damages caused to you and your vehicle will not be covered. Hence you will have to bear the cost of the repairs yourself. This can be curtailed by obtaining a comprehensive policy that covers not only the third party but you as well.

  • High deductibles-

At times, the low price of an insurance policy may be due to a high deductibles clause hidden in the policy wordings. A deductible is an amount that the insured is expected to pay at the time of a car insurance claim. Hence, high deductible results in a lower insurance premium. If the low premium is due to high deductibles, you will have to pay a large part of the expenses yourself.

  • Poor customer service-

If an insurer is offering the cheapest policy, it is likely that they may not have the best customer service. Additionally, the claims support facility may not be efficient as well. Therefore, if you must opt for a cheap car insurance policy, make sure to read reviews from existing customers and find out about the company’s claims handling procedures and customer service.

The best car insurance policy is the one which offers you wide coverage at the best price. Therefore, when choosing an insurance policy, don’t let the price be your primary focus. Make sure to consider the coverage and benefits as well before you buy car insurance policy.

As one of the oldest and most trusted insurance company in India, Bajaj Allianz General Insurance, a partner of Finserv MARKETS, offers car Insurance policies with wide coverage. So why wait? Head over to the Finserv MARKETS website and get your car insured with us, today!

To know more on car insurance in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522